IT managers could be forgiven for being a little overwhelmed as the pace of technology transformation begins to accelerate, exceeding traditional management capability. With disruptions in the market happening at light’s speed, what does it take to win in such a world where the boundaries between industries are constantly thinning or shifting?   

The answer is pretty simple – sure, one needs to have a good “STRATEGY” , but that alone is not enough. Even the best strategies in the world will not propel the company ahead of its competitors, unless the organisation can EXECUTE effectively and adapt as needed. 

It is vital to have an effective and robust Operating Model, for an organization to succeed. 

Operating Model  – Bridge between Strategy and Execution

An Operating Model is the engine of an organization that enables it to deliver value to its stakeholders. If the operating model is not explicitly designed to focus on the strategic priorities of the business, the execution will hit major roadblocks.

A Mckinzey report published in March 2022 suggests that over 70% of large transformation projects fail due to poor execution (organizations moving ahead without an operating model framework). This is not an encouraging statistic, especially when companies invest millions and sometimes billions in the transformation programs. 

Many would ask “why not rely on our best practices?. Well, the problem with ’best practices’ are that they typically take form only after you need them. Few could argue – “why not go with traditional framework like ITIL, ISO2000, Prince 2/PMBOK?”. No doubt that some of the concepts from such frameworks are timeless, but they were created to solve issues which existed a few decades back.  Companies like Amazon, Google, Netflix have moved on and created their own operating model framework to match their business model, and that’s the ’way forward‘ in the world of tech transformation.

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This article written by Saravanan Annadurai was published on DataQuest.